Fannie Mae and Freddie Mac Are Having A “Summer Sale”

There’s a nationwide Summer Sale happening, and no it’s not at Gap (well, who knows, maybe they’re having one too). No, this a house sale, and it’s being put on by what has been the backbone of the U.S. housing market for decades, Fannie Mae and Freddie Mac. Well, it actually seems to be a slightly modified reset of their “Spring Sale” which offered similar incentives, but did not promise an agent bonus.

So What Is The Deal?

Fannie Mae and Freddie Mac are offering anArlginton Foreclosures upfront incentive to buyers of 3.5% cash to help cover the buyer’s closing costs in the purchase of a HomePath or HomeSteps qualified home. They are also offering buyer’s agents a $1,200 incentive as part of the package. Additionally, the HomeSteps program is offering 30% off of new appliances. This is NOT a first time buyer program, but the home does have to be purchased as a primary residence.

To find more information about how HomePath and HomeSteps work you may click the links above or contact me directly. HomeSteps eligible homes must close by September, 30 to qualify, while HomePath eligible homes do not have to close until October, 31st.

Investors may purchase HomePath or HomeSteps homes after 15 days on market, but they are not eligible for the incentive.

What Are HomePath and HomeSteps?

HomePath (Fannie Mae) and HomeSteps (FreddieMac) are the branches put in place in 2009 to handle the new problem both companies had, the ownership of real estate. Through the foreclosure crisis Fannie Mae and Freddie Mac, like many other financial institutions, have found themselves in the position they never intended to be in, property owners. HomePath and HomeSteps are how the companies are managing this inventory of foreclosed homes (you can search that inventory here and here).

HomePath also offers mortgages for qualifying homes, including a Renovation Mortgage that allows buyers to finance upfront construction/renovation costs to help bring the home back to livable condition, or to simply modernize. As with any construction type loan, this requires a bit of jumping through hoops, but can be well worth it in the long run.

Summary

Searching specifically for a HomePath or HomeSteps home can be a great way to assure that, as a buyer, you will keep as much cash as possible in your own pocket after closing. You will have more funds leftover to make the changes to the home you desire, or simply as a safety net for when some of the realities of home ownership start chipping away at your savings.

 

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